Question
An investment fund comprised of an initial cash deposit of $5 million at the COB of the 31st of December, 2016 has further capital injections
An investment fund comprised of an initial cash deposit of $5 million at the COB of the 31st of December, 2016 has further capital injections of cash of $1 million each at the COB of the 31st of December, 2017 and at COB on the 31st of December, 2018. The funds assets are valued at $9.6 million on the 31st of December, 2019 at COB. What is the MWRR of this fund over this period? Use 2 different methods to objectively value the funds on the 31st of December, 2018 just prior to the second $1 million cash injection. Justify your choice of methodologies and explain the difference between the 2 estimates.
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